New data reveals increased use of alternatives as affordability pressures build
Despite ongoing affordability pressures facing new entrants to the housing market, estate agency and property services provider Connells Group has reported a 39% rise in first-time buyer registrations in the third quarter of 2025 compared with the same period in 2024.
The group has released its Q3 2025 Shared Ownership Factsheets, setting out stronger demand from first-time buyers and the relative cost advantage of shared ownership versus traditional mortgages. According to the figures, the average monthly payment on a 25% shared ownership share is £691, which is 36% lower than the average monthly payment of £1,080 for a standard mortgage.
Under the shared ownership scheme, the buyer owns only a portion of the home. Shared ownership essentially works as follows: the buyer purchases a share of the property from the landlord—typically the council or a housing association—and pays rent on the remaining share. The buyer will need a mortgage to fund their portion of the property, which is usually between one quarter and three quarters of the home’s value. If they choose, they can subsequently purchase a larger share and continue increasing that amount until they own 100% of the property’s value.
“Our data shows the demand to step onto the property ladder is clearly there, but as we well know, affordability has become a major blocker for first-time buyers wanting to purchase their first home,” said Roy Hind (pictured right), affordable housing director at Connells Group.
“That’s why shared ownership is a vital solution for aspiring homeowners in today’s market, and one which needs to be prioritised across the housing sector if we really want to help buyers overcome cost barriers and access homeownership.”
Regional analysis in the factsheets suggests the North East currently offers the most favourable conditions for shared ownership, with all five of the most affordable local authorities located there. At the other end of the scale, the five least affordable local authorities are all in London.
The data compare local authorities using an affordability ratio. In Hartlepool, identified as the most affordable area, shared ownership purchasers would on average commit 16% of their income to monthly payments. In Kensington & Chelsea, the least affordable local authority, the equivalent figure is 74%.
“While this data is really encouraging, the supply of new homes remains a significant challenge, with recent NHBC data showing new home starts are 17% below the ten- year average,” Hind said.
“Shared ownership is a vital solution to the affordability gap, and therefore, to truly unlock homeownership for more people, we need to explore innovative ways to boost housing supply and ensure these much-needed options remain available.”
For mortgage professionals, the figures underline the growing role of shared ownership in enabling first-time buyers to access the market, particularly in regions where traditional mortgage repayments consume a high share of income.
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